The BREAK—DOWN
Episode 4: What Economics Gets Wrong About Climate Change w/ Ha-Joon Chang
Jun 27, 2024
Ha-Joon Chang, a noted economist and author from SOAS University, dives deep into the flaws of traditional economic models regarding climate change. He critiques neoclassical economics for its conservative approach and ethical gaps in its life valuation frameworks, revealing disparities between developed and developing nations. Chang argues for rethinking economic growth, emphasizing sustainability and innovative solutions over mere market fixes. He stresses the need for government intervention to tackle the complexities of environmental issues and promote equitable global trade.
53:16
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Quick takeaways
- Neoclassical economics fails to address the climate crisis by prioritizing incremental changes over the radical transformations needed for sustainable solutions.
- The ethical implications of discounting future benefits in economic models undermine the value of future generations and necessitate a reevaluation of climate policies.
Deep dives
The Limits of Neoclassical Economics
Neoclassical economics is critiqued for its conservative approach, which prioritizes maintaining the existing social order and wealth distribution. This framework is insufficient for addressing climate change, as it focuses on marginal adjustments instead of the radical transformations required. For instance, it emphasizes market mechanisms like carbon pricing to address climate issues, which have shown minimal effectiveness historically. Ultimately, the limitations of this economic model hinder serious discussions about redistributing wealth, income, and power to facilitate necessary environmental changes.
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